SPAC Daily: SPACs Look to Avoid Paying for Extensions

by | Jul 7, 2022

SPAC Sponsors are Looking to Skirt Extension Costs

Sponsors want to extend their SPAC lives, but they no longer want to pay up for it. Cleantech Acquisition Corp. (CLAQ), who has a pending deal with Nauticus Robotics, set a vote for July-18 to give the company six 1-month options to extend their deadline and deposit $100k to its trust per month. The company’s original charter called for 2 3-month extension options which would’ve cost them $1.725M each. If passed, and the SPAC takes 6 more months to close, it saves ~$3M for the sponsor.

In addition, International Media Acquisition Corp. (IMAQ), filed for a vote to simply reduce their extension payment from $2.3M for each 3-month extension down to $350K each. IMAQ currently has no target and a deadline if January if it extends twice.

While these moves are not shareholder friendly, they are also not surprising from the sponsors’ point of view. With redemption levels still very high, many are not considering the cash in trust as merger consideration, therefore why not cut your dollar costs and save some money? CLAQ and IMAQ shareholders both have the right to redeem at current levels.

Redemptions Remain Historically Elevated

Source: Boardroom Alpha

Elsewhere in SPACs

  • KludeIn I Acquisition Corp. (INKA) shareholders approved its six 1-month extensions to January, ~40% redeemed
  • Kingswood Acquisition Corp. (KWAC) announced a $208M enterprise value SPAC merger with personal wealth management acquirer / manager Wentworth Management Services
  • Waldencast Acquisition Corp. (WALD) set a vote date of 7/25 for its Obagi Holdings merger

Upcoming SPAC Calendar

Full calendar and SPAC database access here

Today’s Price Action

Biggest Gainers

DNAC surged back to NAV as they adjourned their meeting yesterday to vote on its ProKidney vote, assuming the NAV floor remains intact.

13.01% ~ $ 9.99 | DNAC – Social Capital Suvretta Holdings Corp. III (Announced)
3.91% ~ $ 10.64 | NLIT – Northern Lights Acquisition Corp. (Announced)
1.69% ~ $ 24.12 | DWAC – Digital World Acquisition Corp. (Announced)
1.63% ~ $ 9.95 | NHIC – NewHold Investment Corp. II (Pre-Deal)
1.52% ~ $ 10.02 | MEKA – MELI Kaszek Pioneer Corp (Pre-Deal)
.59% ~ $ 10.05 | INKA – KludeIn I Acquisition Corp (Announced)
.55% ~ $ 10.06 | ACAQ – Athena Consumer Acquisition Corp. (Pre-Deal)
.51% ~ $ 9.85 | EVOJ – Evo Acquisition Corp. (Pre-Deal)
.50% ~ $ 9.97 | SMAP – Sportsmap Tech Acquisition Corp. (Pre-Deal)
.50% ~ $ 10.04 | AFAC – Arena Fortify Acquisition Corp. (Pre-Deal)
.50% ~ $ 10.07 | GOGN – GoGreen Investments Corp (Pre-Deal)
.49% ~ $ 10.20 | FST – FAST ACQ CP (Pre-Deal)
.45% ~ $ 9.95 | WALD – Waldencast Acquisition Corp. (Announced)
.45% ~ $ 9.80 | NDAC – NightDragon Acquisition Corp (Pre-Deal)
.41% ~ $ 9.68 | GHIX – Gores Holdings IX, Inc. (Pre-Deal)
.41% ~ $ 9.82 | KYCH – Keyarch Acquisition Corp (Pre-Deal)
.40% ~ $ 9.96 | DECA – Denali Capital Acquisition Corp. (Pre-Deal)
.40% ~ $ 9.98 | WINV – WinVest Acquisition Corp. (Pre-Deal)
.40% ~ $ 9.99 | CFVI – CF Acquisition Corp. VI (Announced)
.40% ~ $ 10.04 | UPTD – TradeUP Acquisition Corp (Pre-Deal)

Biggest Losers

-1.93% ~ $ 9.94 | LAAA – Lakeshore Acquisition I Corp. (Announced)
-1.19% ~ $ 10.00 | CBRG – Chain Bridge I (Pre-Deal)
-.61% ~ $ 9.76 | GLHA – Glass Houses Acquisition Corp. (Pre-Deal)
-.60% ~ $ 9.86 | GSRM – GSR II Meteora Acquisition Corp. (Pre-Deal)
-.56% ~ $ 9.89 | AFAR – Aura Fat Projects Acquisition Corp (Pre-Deal)
-.51% ~ $ 9.84 | PAQC – Provident Acquisition Corp. (Announced)
-.50% ~ $ 9.99 | HCMA – HCM Acquisition Corp (Pre-Deal)
-.41% ~ $ 9.67 | AFTR – AfterNext HealthTech Acquisition Corp. (Pre-Deal)
-.41% ~ $ 9.70 | CORS – Corsair Partnering Corporation (Pre-Deal)
-.41% ~ $ 9.74 | FWAC – Fifth Wall Acquisition Corp. III (Pre-Deal)
-.41% ~ $ 9.79 | IPVI – InterPrivate IV InfraTech Partners Inc. (Pre-Deal)
-.40% ~ $ 9.86 | JGGC – Jaguar Global Growth Corp I (Pre-Deal)
-.40% ~ $ 9.92 | BRKH – BurTech Acquisition Corp. (Pre-Deal)
-.36% ~ $ 9.76 | PTOC – Pine Technology Acquisition Corp. (Pre-Deal)
-.35% ~ $ 9.88 | ASPC – Alpha Capital Acquisition Company (Announced)
-.31% ~ $ 9.61 | NFYS – Enphys Acquisition Corp. (Pre-Deal)
-.31% ~ $ 9.66 | HWEL – Healthwell Acquisition Corp. I (Pre-Deal)
-.31% ~ $ 9.74 | OSI – Osiris Acquisition Corp. (Pre-Deal)
-.31% ~ $ 9.77 | MBAC – M3-Brigade Acquisition II Corp (Pre-Deal)
-.31% ~ $ 9.78 | MSAC – Medicus Sciences Acquisition Corp. (Pre-Deal)

<a href="" target="_self">David Drapkin</a>

David Drapkin

Spent his formative years at Goldman Sachs and now embraces the start-up life in NYC. A long suffering Oakland (Las Vegas) Raiders fan and graduate of the Wharton School at the University of Pennsylvania. Semi-professional go-kart racer waiting for his shot.

Know Who Drives Return

Objective, data-driven assessments for every public company director and officer.

SPAC Analytics & Database

Comprehensive research and analytics on every SPAC, sponsor, and deal. Real-time alerts, yields, red flags, filings, investors, and much more. API access to institutional grade SPAC database.

Monthly SPAC Review

SPAC Market Review – July 2022

Liquidations, cancelled deals, and a dead IPO market highlight Boardroom Alpha’s July 2022 SPAC market review. Read for a full recap.

SPAC Market Review – June 2022

Boardroom Alpha’s June 2022 SPAC market review looks at the latest trends in SPACs, where the market is heading a recap of activity.

SPAC Market Review – May 2022

Inflation, rising interest rates, and reduced corporate earnings across the board have led to persistent market gyrations which prove its too early for bottom fishing. The stampede out of deSPACs now makes it ‘deal-or-die’ time for those without targets.

SPAC Research & Analysis

Boardroom Alpha Digest: Mon, Jan 9

Rite Aide Corporation (RAD) parts ways with Heyward Donigan and Paya Holdings (PAYA) acquisition highlight Monday’s daily digest.

Boardroom Alpha Digest: Thurs, Jan 5

Boardroom Alpha’s Daily Digest highlights include Elizabeth Spaulding resigning as CEO of Stitch Fix (SFIX) and JNJ’s Kenvue filing for an IPO

SPAC Market Review – December 2022

December’s SPAC market review takes a look by the numbers of the month’s SPAC activity and how the market currently stands going into 2023.

SPACs Today: Wednesday, Dec 14

Rice Acquisition Corp. II (RONI) with an encouraging energy transaction, and the rest of the day’s SPAC news.

SPACs Today: Monday, Dec 12

Venus Acquisition Corporation (VENA) finally closed and changes ticker to MLGO, and the rest of the day’s SPAC news.

SPAC Market Review – November 2022

November’s SPAC market review paints a picture of a SPAC market rushing towards the exit with high, and accelerating liquidations, more deal terminations, and almost no new SPAC IPOs.

Know Who Drives Return Podcast

Boardroom Alpha Daily Read

We take a look at the day’s news, ESG trends and special situations. WindAcre increases its stake and opposes NSLN takeover bid. Activist Jana Partners brings lessons learned at ConAgra (CAG) to Treehouse Foods (THS). And other notable special situations.

Boardroom Alpha Daily Read

We take a look at the day’s news, ESG trends and special situations. Management shakeup at Faraday Future (FIFE) is an all-too familiar story in the world of EV SPACs. Blackrock to be 75% net-zero aligned by 2030, and Jana closing in (again) at Treehouse Foods (THS).

FOXO Technologies CEO Jon Sabes Is About to Disrupt the Insurance Industry

Boardroom Alpha talks to Jon Sabes, CEO of FOXO Technologies, which announced a SPAC merger with sponsor Delwinds Insurance Acquisition Corp. (DWIN). Sabes explains how epigenetic biomarkers can change the game for life insurance companies and tell us more about health and wellness than ever before.


The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but Boardroom Alpha cannot guarantee its accuracy and completeness, and that of the opinions based thereon. 

This report contains opinions and is provided for informational purposes only – it does not constitute investment, legal or tax advice. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment.  

None of the information contained in this report constitutes, or is intended to constitute a recommendation by Boardroom Alpha of any particular security or trading strategy or a determination by BA that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.  

No representation or warranty, expressed or implied, is made on behalf of Boardroom Alpha as to the accuracy or completeness of the information contained herein. Boardroom Alpha does not accept any liability for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on all or any part of this research and any liability is expressly disclaimed.